Do Floor Traders Still Exist

Why the new york stock exchange nyse still has human brokers on the trading floor quartz.

Do floor traders still exist.

We are doing a disservice to you our readers and therefore we too must change with the. Floor trading still exists but it is responsible for a rapidly diminishing share of market activity just 10 in 2017 according to a cnbc report. Still by relying on trading floor photos we have been distorting the truth rather than reporting it. Traders are still trading on the floor of.

The days of pit trading have ended. After working as a runner and clerk on the trading floor he was a trader on the screen for years before asking last year to return to the floor as a trader in the 10 year treasury options pit. However a few exchanges still have physical traders on the floor or located at the exchange. Floor traders used to use the open outcry method in the pit of a commodity or stock exchange but now most of them use electronic trading systems and do not appear in the pit.

Skilled floor brokers can often get better execution better pricing by working the order with other traders something that electronic systems generally cannot do so well. Execs acknowledge that the traders are useful for marketing but say there s more to it than that. As of 2019 much of the trading on the nyse is digital rather than physical and the exchange floor while still home to some traders is considerably less crowded than it used to be. There are a lot of people in trading firms who grew up with floor trading and don t want to give it up either because they feel more comfortable with it or because they might lose their job if they went away from it.

Listener john wang who dabbles in a little online trading wrote in to ask this.